I thank the Minister for that clarification and we hope that the order will be before us soon. I understood that the conversation in that region between the local authorities had made substantial progress and that they were looking to move forward. The Opposition will support the establishment of the north-east combined authority when that is proposed, however it is named.
Today’s steps on combined authorities are welcome but still more can be done on additional freedoms. The Opposition are considering the case being made by organisations including the Local Government Association, the special interest group of municipal authorities, ANEC and other bodies for additional powers. We agree with them that there is a need for a clearer plan for sub-national government that, crucially, works for all areas of the country. There is a need for further consideration of what arrangements will work best in two-tier areas, for example. There needs to be further devolution of funding streams. The Opposition are committed to significant reform in that area: for example, we will give local authorities a strong role in co-commissioning the Work programme.
The new combined authorities are keen to have a dialogue with the Minister, as he is no doubt aware, about “earn back” schemes for their areas. Such a scheme has been a feature of the Greater Manchester combined authority. It will be useful to hear the Minister’s thoughts, and to hear about any progress that has been made with the three new combined authorities.
There is also the question of legal restrictions around the combined authorities’ ability to borrow for non-transport purposes. The authorities have argued that that will remove a significant barrier to the unlocking of local resources to support infrastructure and growth. That change has been strongly advocated by Greater Manchester. What is the Government’s view on that and how do they intend to respond? Are the Government prepared to consider the request for combined authorities to be able to recover VAT, as local authorities do?
In relation to York, may we have an update from the Minister on the important matter of non-contiguous boundaries affecting authorities’ ability to combine? The Minister and I have discussed that issue informally on several occasions, and there have been exchanges in the House between us and between the Secretary of State and the shadow Secretary of State on the matter. Although those exchanges have been encouraging, there is frustration in some parts of the country about the delay. The Minister may be aware that Portsmouth and Southampton councils, for example, are keen to work more closely together but feel that they are being prevented from doing so by Hampshire county council, which does not wish to be involved in such joint arrangements. We urge the Government to consider how that issue can be dealt with in all parts of the country, but the Government may choose to make specific arrangements in individual cases.
As the Minister knows, my right hon. Friend the Member for Leeds Central (Hilary Benn) has made the case for the City of York, which wishes to join the Leeds city region. The Secretary of State has agreed that that makes sense. He told my right hon. Friend on 28 October 2013:
“I am confident we can have a resolution before Christmas.”—[Official Report, 28 October 2013; Vol. 569, c. 690.]
However, in a written answer in February the Under-Secretary of State for Communities and Local Government, the hon. Member for Great Yarmouth (Brandon Lewis), who is in his place, said that
“we are now considering consulting before the summer on a Legislative Reform Order”—[Official Report, 24 February 2014; Vol. 576, c. 120W.]
That may be the order to which he referred earlier, which the Government hope to bring forward before the purdah period.
My right hon. Friend raised the delay at Communities and Local Government questions on 3 March. The Secretary of State said:
“I did not specify which Christmas I meant. However, I gave the right hon. Gentleman an undertaking, and it was a proper undertaking. Various legal obstacles were put in our way, but we intend to consult, and, subject to the position being legally satisfactory, there will be a resolution. Given that I gave an undertaking from the Dispatch Box to resolve the matter, I will not lightly do otherwise.”—[Official Report, 3 March 2014; Vol. 576, c. 621.]
We welcome that assurance. We have appreciated the constructive dialogue that has taken place between the Opposition and the Government. We accept that the Secretary of State’s undertaking was given in good faith, but I am sure the Minister understands that there is some disappointment that the matter is dragging on.